The term bad credit MasterCard can be found all over the internet in many different articles and adverts. But what exactly is a bad credit credit card and why would you need to get one? This article breaks those questions down, and gives you all of the information to decide whether this sort of credit card can be of use to you.
First, we look at what bad credit actually is. Every customer in the country has a credit history, which can be assessed in different ways by different credit companies to give a credit score. Generally speaking, the better you handle you credit accounts (such as credit cards and unsecured personal loans) the better this credit score will be.
This means that carrying out financial misdemeanors such as missing loan payments, being overdue on credit card payments and defaulting on credit agreements can lead to a consumer having bad credit, which in turn makes it extremely difficult for them to be accepted for new credit products.
It could be suggested that these people should not have credit cards and loans, but in today's world credit cards have a vast amount of uses that can make life without them difficult. This is where the bad credit MasterCard can help.
The bad credit MasterCard is offered by many different credit companies, including those found online as well as regular high street banks. They display the MasterCard logo and provide all of the same uses as normal credit cards, but are specifically targeted at people with low credit scores, and often provide guaranteed acceptance to these individuals.
The main advantage of a bad credit MasterCard is that it will usually offer regular reporting to the three major credit bureaus in the country. These bureaus provide the data for our credit reports, so by using their new credit card in a responsible manner an individual can improve their credit rating and get their finances back on track.
The bad credit MasterCard is not for everyone, however. Anyone that has problems making their repayments or have an unreliable source of income should first consider applying for a secured credit card. These types of cards require the account holder to make an initial deposit of their own funds, which then acts as security against their credit limit.
If you are thinking about applying for a bad credit MasterCard, it is strongly advised that you compare the features and benefits of at least four different cards before applying. The cards will all have different rates of APR, different monthly fees and different service charges, so it can really pay to shop around.
In addition to this, finding a credit provider that reports to the credit bureaus on a regular basis is vital. Without this, a bad credit MasterCard can turn into an expensive financial tool that will not benefit you in the long run.
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Article Added on Friday, July 13, 2012
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